Early Age Co., Ltd. (3248) AI Stock Analysis

• Market Cap: ¥2.75B
• Dividend Yield: 4.18%
• Average Volume (3M): 2.44K
• Price to Earnings (P/E): 11.6
• Beta (1Y): 0.44
• Revenue Growth: -31.48%
• EPS Growth: -60.03%
• Country: JP
• Employees: 15
• Sector: Real Estate
• Sector Strength: 52
• Industry: Real Estate - Diversified
• EPS (TTM): 38.80
• Shares Outstanding: 3,181,000
• 10 Day Avg. Volume: 3,870
• 30 Day Avg. Volume: 2,436
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥954.00
• Price Target Upside: 10.80% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 78 Outperform
• Price Target: ¥952.00 ▲(10.57% Upside)

Early Age Co., Ltd. demonstrates strong financial performance and a positive technical outlook, supported by solid valuation metrics. The company's robust revenue and profit growth, along with efficient operations and cash flow generation, are significant strengths. The stock's upward trend and attractive dividend yield further enhance its appeal. However, the moderate leverage requires careful monitoring.

Early Age Co., Ltd. Business Overview & Revenue Model

Company Description

Early Age Co., Ltd. (3248) is a dynamic company specializing in the development and distribution of educational content and technology solutions for early childhood education. Operating primarily within the edtech sector, the company focuses on creating engaging learning materials, interactive software, and digital platforms aimed at enhancing the educational experience for young learners. With a commitment to fostering innovative learning methodologies, Early Age Co., Ltd. serves both educational institutions and parents seeking effective tools for child development.

How the Company Makes Money

Early Age Co., Ltd. generates revenue through a diversified model that includes the sale of educational software licenses, subscriptions to digital learning platforms, and the provision of training services for educators. Key revenue streams consist of direct sales to schools and educational organizations, as well as partnerships with governmental and non-governmental organizations aimed at improving early childhood education. Additionally, the company may collaborate with technology firms to integrate their solutions into broader educational ecosystems, further enhancing their market reach and profitability.

Early Age Co., Ltd. Financial Statement Overview

Summary

Early Age Co., Ltd. exhibits strong financial health with impressive revenue and profit growth, efficient operations, and improved cash flow generation. Despite a moderate level of leverage, the company's ability to generate cash and profits effectively mitigates some risks.

Income Statement

Early Age Co., Ltd. has demonstrated strong revenue growth over the past year, with a notable increase from 3,440,552,000 to 4,725,523,000 yen, representing a growth rate of 37.3%. The gross profit margin stands at 31.1%, and the net profit margin has improved to 11.2%. Both EBIT and EBITDA margins are healthy at 18.8% and 23.6% respectively, indicating strong operational efficiency and profitability.

Balance Sheet

The company's debt-to-equity ratio is 1.93, which suggests a moderate level of leverage. The return on equity (ROE) is 11.6%, reflecting effective use of equity to generate net income. The equity ratio is 31.7%, indicating a stable financial structure with a reasonable portion of assets funded by equity. However, the high level of debt could pose risks if not managed carefully.

Cash Flow

There has been a significant improvement in free cash flow, growing from -126,253,000 to 841,929,000 yen, a remarkable turnaround. The operating cash flow to net income ratio is 3.94, showing robust cash generation relative to earnings. The free cash flow to net income ratio is 1.59, indicating strong conversion of earnings into cash flow. Despite past fluctuations, recent trends are positive.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.73B	3.44B	3.70B	3.34B	3.57B
Gross Profit	1.47B	1.07B	1.15B	1.00B	1.05B
EBITDA	1.12B	748.00M	847.28M	636.85M	686.14M
Net Income	529.85M	326.99M	375.58M	258.52M	302.53M
Balance Sheet
Total Assets	14.40B	13.49B	13.15B	13.42B	12.39B
Cash, Cash Equivalents and Short-Term Investments	1.78B	920.87M	964.11M	1.03B	1.25B
Total Debt	8.79B	8.56B	8.36B	9.02B	8.13B
Total Liabilities	9.84B	9.35B	9.25B	9.69B	8.83B
Stockholders Equity	4.56B	4.14B	3.91B	3.74B	3.56B
Cash Flow
Free Cash Flow	841.93M	-126.25M	719.45M	-939.60M	-596.51M
Operating Cash Flow	2.09B	840.21M	1.17B	375.17M	795.50M
Investing Cash Flow	-1.35B	-992.17M	-473.38M	-1.41B	-1.43B
Financing Cash Flow	118.27M	108.72M	-757.23M	806.27M	439.84M

Early Age Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 861.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3248, the sentiment is Positive. The current price of 861 is above the 20-day moving average (MA) of 851.05, above the 50-day MA of 839.00, and above the 200-day MA of 797.59, indicating a bullish trend. The MACD of 7.46 indicates Negative momentum. The RSI at 59.36 is Neutral, neither overbought nor oversold. The STOCH value of 67.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3248.

Early Age Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3248	78 Outperform	¥2.75B	11.60		4.18%	-31.48%	-60.03%
3280	76 Outperform	¥7.13B	3.49		2.17%	27.67%	108.96%
8940	73 Outperform	¥8.05B	4.49		3.12%	4.90%	302.20%
8927	70 Outperform	¥14.10B	14.18		2.19%	5.06%	-39.19%
3246	67 Neutral	¥6.60B	27.41		3.68%	-21.68%	-77.48%
Sector *	53 Neutral	$1.24B	2.96	-5.63%	5.76%	-4.15%	-87.10%
3469	41 Neutral	¥3.72B	26.54		1.42%	61.76%	―